Beyond gifting: The hidden benefits of gift cards

With a plethora of options and the freedom of choice, gift cards are the perfect way to show your affection and make someone’s day. However, is their only purpose centered on gifting? Certainly not, or at least not anymore.

The continuous innovation of the pioneers in the gift card industry, aided by the massive digitalisation, and the ever-evolving business and consumer needs, has eventually unleashed their full potential.

Gift cards have grown into a form of branded currency – encompassing a variety of physical or digital payment methods, including coupons, loyalty points – that can be employed in various consumer payment and business applications.

Unlocking new opportunities for businesses

The gift card sector is booming in the MENA region. In the UAE, it is anticipated to rise by 11.5 per cent year-over-year to $1.79bn in 2023. Similarly, the gift card market in Saudi Arabia is estimated to be worth around $1.55bn in 2023, up 11.1 per cent compared to 2022.

As a result, businesses have a wealth of opportunities at their disposal for attracting customers and building loyalty, inspiring employees and retaining talent, as well as improving overall business outcomes.

Companies can strengthen their loyalty programmes by seamlessly integrating gift cards, offering a wider range of choices for their valued customers. Imagine the convenience of redeeming your hard-earned points for an extensive variety of digital gift cards to use easily.

For customers, convenience and choice enhance their shopping experience and loyalty to the brand. Additionally, offering rewards for customers using gift cards can significantly boost sales of the company. This strategy isn’t just about attracting new customers; it’s also about ensuring existing ones re-main happy and loyal, driving sustained growth for the business.

Gift cards are also an innovative and cost-effective method for businesses to incentivise and motivate their workforce, all the while decreasing employee turnover.

Studies indicate that incentive-based rewards can boost employee performance by 22 per cent. Reward schemes have a significant influence on employee morale and company culture, resulting in happier team members and greater productivity.

Whether it’s for big projects, overall performance, holidays or special events, showing appreciation through rewards can go a long way in keeping employees engaged and driven.

We should also remember that gift cards are a legitimate form of payment. Looking to hire a temporary employee or worker? Consider gift cards as a type of payout solution, efficient and cost-effective. Want to generate a buzz and interest in company products and services? Simply offer gift cards as an incentive for promotional campaigns. With their versatility, efficiency, and simplicity, companies can use gift cards in many ways to incentivise employees and customers or simply use as a payout option.

Redefining everyday consumer activities

Gift cards can also be used to partly support remittance needs, specifically for grocery shopping, mobile recharge and other everyday essentials. They are cost effective to deliver and more thoughtful for your loved ones. They can also be used straight away and provide superb flexibility when it comes to customisation options and convenience.

Given that consumers in the Middle East are engaging in cost-saving behaviours to alleviate the pressure from price hikes, gift cards can be used in a digital wallet to easily manage their budget and help them organise everyday expenses such as groceries and food.

Hypermarket and mobile recharge gift cards, for example, are perfect for purchasing weekly groceries. Plus, consumers can take advantage of the discounts and special offers often included with gift cards to make the most of their money.

It’s all about the unrivalled end-user experience

We would not be exploring all of these possibilities, if it weren’t for the amazing end-user experience and convenience that the leading gift card marketplaces brought to the table.

Especially in their modern, digital form, gift cards offer various easily redeemable options. Since they are accessible through numerous platforms, including mobile apps and digital wallets, digital gift cards eliminate the need for physical cards, while users can split their value and spend it whenever, and wherever, they choose. On top of that, businesses can personalise digital gift cards with messages and branded designs to ensure that their customers feel special.

The more people get introduced to the enticing world of reliability and flexibility that gift cards provide, the more opportunities arise for businesses to capitalise on their distinct advantages while building meaningful relationships with their customers and employees. The age of branded currency as a means of exchanging goods and services is officially here, and it’s thrilling.

Husain Makiya is the co-founder and CEO at YouGotaGift

Read: Five minutes with.. Abed Bibi And Husain Makiya, co-founders, YouGotAGift.com